Fidelity vs Schwab

[Katoslake]

Currently we have accounts at Fidelity. In the past 10 days Fidelity has made several very frustrating mistakes on our, my and my significant other's accounts.
Normally I would just grin and move on, but SO has noticed these mistakes and actually questioned the competence of the reps assisting us.

That said, any opinions on the pros/cons of Fidelity vs Schwab will be appreciated. Given one of the "mistakes" it gives me serious pause as to the wisdom of keeping everything at one firm.

Thanks

 

[Car-Guy]

I've been with Schwab for over 40 years now... Overall, I'd give them an A-... Not perfect but pretty dang good. Their customer services is exceptional, IMO. I usually prefer using them over calling the FA they assigned me, when needed.

 

[COcheesehead]

I’ve been at Fidelity for almost 15 years. I don’t even use a “rep”.

 

[2017ish]

We have TIRA and Roth accounts at both and over the past 5 years have had taxable CMA-type accounts at both as well, with international ATM withdrawals from each.

I don't use reps at all, so perhaps not a perfect match for you. But, be that as it may, I have no real complaints about either one. (As opposed to Merrill Edge, which we keep passively invested IRAs at solely to maintain beneficial preferred status in BoA ecosystem.)

 

[audreyh1]

Been with Fidelity over 30 years. i only remember 1 teeny mistake over that time period and it was promptly corrected. They handled several more complex issues flawlessly. I don’t generally work through a rep, but call their private client group if phone support is needed which is rare. I mostly do stuff online and self-directed.

 

[Katoslake]

OP here. I’ve been with Fidelity for over 20 years. Tried their managed accounts and that was a performance and expense mistake.

Without getting too specific, Fidelity has opened two new accounts as a result of me adding spouse as a co-owner. Also, locked another account with Zero explanation.

I won’t go further, but a Fidelity VP told me that they tripled entry level employees during the pandemic. I’m thinking experience is lacking as it is in many industries.

Thanks again for the comments !

 

[wolf]

Just received 1099 div/int from Schwab today. 02/27. Completed Tax forms for 2022,
in envelope. Lucky I did not mail yet. Now I have to redo all !!

New Customer with Schwab. Opened account late Dec. 22. All of the other financial institutions I deal have "long" ago, provided all of my tax documents.

Just something to be aware of in the future....

 

[dmpi]

I've been happy with Schwab. I have a FA assigned to me but I just call the 1-800 number if I have a question. They pick up fast and the people on the other end seems knowledgeable. I guess my only little beef with them is the high yield MM account (SWVXX) isn't a sweep account so you have to manually move money into it.

 

[JackJester]

We have seen this Schwab-vs-Fidelity-vs-Vanguard discussion many times. The bottomline is that they are all good when it comes to 'YOU" managing your own $. At all 3 you have the same access to cheap index funds/ETFs, and convenience to buy and sell when you need to. And access to CDs, Treasuries, etc... everything you need. If you decide to pay them to manage your $ for you, then the results will vary since your are now talking about individuals and the variables they add to the equation ...their personalities and work ethic, and knowledge, etc. I personally have investments at both Schwab and Fidelity. I prefer Schwab's on-line website better, but that's about the only diff between the 2 for me. Yes, Schwab seems to have their 1099s available later in the tax year than others, but that doesn't drive my life's schedule. Don't over think things. Pick one or 2 and learn to use their tools, then evolve over time.

 

[frayne]

I’ve been at Fidelity for almost 15 years. I don’t even use a “rep”.

Ditto, except I've probably been with FIDO for twice as long.

 

[DrRoy]

Been with Fido 40+ years. Can't recall a problem.

 

[MSDalt]

My (definitely not comprehensive) observations
FIDO has these advantages:
60-day holding period to avoid short term trading fee on mutual fund shares (90 days at Schwab)
Better interest rate on sweep account
Fidelity mutual funds available without transaction fee
No fee to transfer fund shares to another broker (Schwab charged me but I got it reversed)
Schwab advantage:
$100 minimum initial purchase amount on many mutual funds (higher at Fidelity)

 

[COcheesehead]

My (definitely not comprehensive) observations
FIDO has these advantages:
60-day holding period to avoid short term trading fee on mutual fund shares (90 days at Schwab)
Better interest rate on sweep account
Fidelity mutual funds available without transaction fee
No fee to transfer fund shares to another broker (Schwab charged me but I got it reversed)
Schwab advantage:
$100 minimum initial purchase amount on many mutual funds (higher at Fidelity)

Fidelity has a bunch of no transaction fee funds, not just Fidelity branded. They also have no minimum on initial purchases of Fidelity funds, at least for us. No transaction charges for any equity or ETF.
Fidelity also has some of the best DIY planning tools, fixed income tracking tools and it’s very easy to buy and ladder bonds.
Certain account levels get free TurboTax too.

 

[imbatman]

Just double check any mutual funds if you have any that you can't live without. I was considering a move over to Fid and found one of my favorite funds (YACKX) requires a $49 per purchase/re-invest/sell transaction fee in an IRA on Fid, which is not required on the two other brokers I can compare against.

 

[ShokWaveRider]

My only complaint about Schwab is the poor return on their sweep account. But it does keep one on one's toes. There could be a disclosed and documented "grace period" when buying equities, CDs and Paper. Other than that not much to complain about. They typically pay higher on their MM funds too.

 

[MRG]

I've had a really bad experience with my former Fidelity representative. I still use them for my self managed money, but we also use Vanguard's PAS for the rest. DW will transfer any money left in Fidelity to Vanguard when I die. If you think Fast Eddie is bad, wait for the Fidelity guy to put their hard sell on a loved one.

I'll never have just one provider as they can screw up and lock your assets, too. Systems go down, tier 5 solutions often have two datacenters doing the same thing, leaving the applications unavailable.

My career was around the industry and the back offices. An entry-level position requires a clean criminal background and a high school diploma. I think most people here could pass the series six test without any preparation. You are better off doing it yourself.

ETA: I did complain to the Fidelity branch manager, and he fired me from a private client even though I met the requirements. I complained to Fidelity in a public forum, and they assigned a new guy. We've talked twice in the last couple of years. Once for an initial interview, and he called me in a panic one year end; his goal was to get me to move our Vanguard assets to Fidelity. I said no based on my prior Fidelity and career experiences and haven't heard anything from him since.

 

[jazz4cash]

Just received 1099 div/int from Schwab today. 02/27. Completed Tax forms for 2022,
in envelope. Lucky I did not mail yet. Now I have to redo all !!

New Customer with Schwab. Opened account late Dec. 22. All of the other financial institutions I deal have "long" ago, provided all of my tax documents.

Just something to be aware of in the future....

Did they offer access to the forms electronically? Fido used banners to tell me what firms I’d receive and when they’d be ready. Two were available in Jan but the 3rd wasn’t ready till 2/15. I must’ve signed up for electronic delivery.

 

[FREE866]

I’ve been with Schwab for many years. I really like them. The chat feature is great and although I do everything myself my FA is responsive when i need him.